Back in Boston, Steve has been busy creating and managing his new company, Teton Mountaineering (TM), which is based out of a small town in Wyoming. In the process of doing so, TM has acquired various types of assets. Below is a list of assets acquired during 2016:

During 2016, TM had huge success (and had no §179 limitations) and Steve acquired more assets the next year to increase its production capacity. These are the assets acquired during 2017:

TM generated taxable income in 2017 of $732,500 for purposes of computing the §179 expense.
Required
a. Compute the maximum 2016depreciation deductions including §179 expense (ignoring bonus depreciation).
b. Compute the maximum 2017depreciation deductions including §179 expense (ignoring bonus depreciation).
c. Compute the maximum 2017depreciation deductions including §179 expense, but now assume that Steve would like to take bonus depreciation.
d. Ignoring part c, now assume that during 2017, Steve decides to buy a competitor's assets for a purchase price of $350,000. Compute the maximum 2017cost recovery including §179 expense (ignoring bonus depreciation). Steve purchased the following assets for the lump-sum purchase price.

e. Complete Part I of Form 4562 for part b (use the most current form available).

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Asset Office fumiture Machinery Used delivery truck Cost $10,000 560,000 15,000 Date Place in Service 02/03/2016 07/22/2016 08/17/2016 Asset Computers &Info. System Luxury Auto Assembly Equipment Storage Building Cost S40,000 80,000 475,000 400,000 Date Place in Service 03/31/2017 05/26/2017 08/15/2017 11/13/2017 Asset Inventory Office furniture Machinery Patent Goodwill Building Cost $20,000 30,000 50,000 98,000 2,000 130,000 20,000 Date Placed in Service 09/15/2017 09/15/2017 09/15/2017 09/15/2017 09/15/2017 09/15/2017 09/15/2017 an